Roy, Jack and All,...Been off the web since last night.
Office computer system crashed and down until now. Iomega Jazz backup saved the day. Can't believe Cabot Market Letter issued sell on Iomega last night. Was out today at 23+ after 200% + gain and will watch this one real close as we approach 2Q earnings.
Now, Back to PRST. Roy, in answer to your question, I have not sold a single share. I believe the PRST research posted on this web over the last month is actually MORE concise and detailed in positive support of the future of this company, than anything Lutts has ever published or found on his own. Absolutly nothing has changed regarding my positive opinion of the future value of PRST stock.
As stated just previously, Lutts is not this company's creator or destroyer. He never designed the laser thermal plate technology, nor does he sell Heilelburg Quickmaster DI's, nor is he responsible for the publication "Individual Investor" magazine, July 1996 issue listing PRST as the third leading growth company in America in their "Best of the Best" catagory.
The following should be clear to all of you that have been following this thread and the WSJ writer, Laura Johannes. This lady has a vendetta and crusade. In my opinion, this latest endevor is another vicious attacks on PRST and another example of the prior numerous occasions she has twisted the facts and distorted the truth.
After contacting Lutts, she manuvered an interview over a week ago by stating she was interested in his side of the story of PRST. Lutts told me that after conversing with his staff, they decided to speak with her, as she stated she was anxious to provide the WSJ readers with true facts and details of the PRST product and the true reasons why Cabot Market Letter was still recommeding PRST as the next Xeroz. Cabot staff believed they would be able to tell the world about this company and provide information for a positive artical and also be quoted properly in context. It is clear that Ms. Johannes had no intention of providing any positive information regarding Lutts or PRST. She convienently picked and selected the negative portions of the interview, left out very pertinent information, and slanted the information to creat another negative salvo.
1. Lead to story was critical of a June 15th add, placed in Barron's. The add was ordered on May 28th when the stock was $175. Ms J does not state that a 3 week advance ORDER is REQUIRED for an ad to appear. She attacks the fact that the stock had "plunged 60%" as if Lutts KNEW that would happen prior to placing the ad.
2. Ms. J. quotes "people familiar with the matter" (Does not give names) as those telling her that the SEC inquiry included Cabot in it's 15 month investigation of "possible Manipulation of PRST stock." The allegations are that Lutts offered over rosy earning predictions for PRST stock. "THESE ALLEGATIONS CAME FROM PRST SHORTSELLERS"
The earnings projections were higher than PRST's internal people had estimated, although at even half the number of plates, it would indicate PRST for future greatness!
3. The WSJ has attempted to link the Cabot Maket Letter and the Cabot Money Management Firm as being one and the same and conspiring to make money at the expense of the Market Letter subscribers. As Jack has stated in previous posts today, I was told by Lutts and posted here a couple of weeks ago, that the Cabot Market Letter and all of his staff had never sold a share of PRST stock. "THAT WAS CONFIRMED TODAY" Cabot Mkt. Ltr. holds PRST as a heritage stock and part of the model portfolio. They state the neither the market letter or the staff have sold a share.
The Cabot Money Management Co. is a complete seperate company, run by one of Lutt's son's and NOT by Carlton Lutts. I am told that the management company is completely independent of the Father's market letter. I was told they use the strickest ethics in this relationship and the the younger Lutts does not consult his father for direction and acts independent and seperate in his decisions regarding the money management firm. The son is not provided any advance information on when the market letter is buying or selling a stok. The Money Management Company subscribes to the market letter and that is the only contact the younger Cabot gets in knowing what the Market Letter is doing. Ms. J. (WSJ) alludes that the Father and Son might have colluded together in an attempt to push up PRST in the market letter, while the son conveniently sells off the Money Management PRST position.
The WSJ states, and I was told by Lutts that when the PRST stock was near it's peak, (May 16) the Money Management Co. sent out a letter to those holding a large position of PRST, 30% to 40% of their portfolio, that pointed out that their PRST position had reached a large percentage of their total individual holdings. As any competent money manager, Lutt's son fulfilled his obligation to remind those that entrusted their portfolio to him, that diversification is an important element of investing and warned about becoming over-exposed in any one stock. The son indicates that out of the PRST portion of the Money Management's holdings, (729,441 shares PRST) the number that were directed by clients to be sold, was "minuscule." Not half or quarter or even 10% just "minuscule". NONE SOLD BY CABOT MARKET LETTER even though it represents about 40% of the market letter's portfolio! (I am trying to learn exactly how much "minuscule" was.)
There are many stockholders that own PRST that have bought the stock due to the companies product and future earnings projections. These people have nothing to do with Cabot or Lutts. Do some of you actually believe that if Lutts (age 70) should drop dead tomorrow the stock would drop to $1.00? If he had that kind of influance, the stock would have dropped 20 points today after the one sided artical.
Ms. J states that after the Lutts predicted .17 earnings this quarter, PRST placed a statement, saying "the estimate was developed by Cabot without contacting PRST". Ms. J follows by stating that "It's news release (regarding above) carried the headline "Prestek Responds to Misinformation in the Marketplace" Very conveniently does she LEAVE OUT the true misinformation that the PRST news release was actually addressing. Nearly all of the artical was disputing the false news and media reports that spewed that PRST patents were being recalled and challenged by US Patent Office. Nothing said about how PRST stated their patents were strong and not under challenge. Nothing said about the misinformation by WSJ regarding insiders actually selling a few of their shares...not "most of their shares" as reported by Ms. J and Dow Companies. This all came under the banner of PRST responding to misinformation in the marketplace.
Regarding this whole Lutts thing...He believes he has a found a company that has the ability to hit the top levels of investor gain. If he is wrong, he won't be alone. Many are pursuing a lot of research on this stock as there is curiosity in the market. PRST is becoming a recognized houshold name! I can assure you all of this, if PRST sales and earnings in future quarters escalate at the kind of increase rate we have seen in prior quarters this stock will soar as many will jump on the new momentum play. As the plate sales are just beginning to kick in, and will start really reflecting in the future sales of this companies products, all those that are bears now, will be on the positive side of this stock.
Let's face it, I've said it before, we're all here to make money. Some have different opinions as to which way they will make it in the short term. We all should and need to learn from each other. There will be other PRST's. We need to know when to recognize a top end and bottom side. (When to sell and buy back) Negative and positive research and opinions are needed on this stock. Hat's off to Tom, Jason, Jack, Bev, Dave P, and Meng Soon for all the great comments and hard work that has added greatly to all of our education here. Especially to E.R. for your support and encouragement. Many of you new contributors should understand that Jack was correct when he called the drop of this stock at 175. He may be the true realist out of the bunch of us. Those that have already ridden this both ways and are still holding regret not recognizing the sell signs at the high. It WOULD have been nice to be able to buy back now at these low prices today.
I have no idea which way this stock will move short term, would love to buy again in the 40s, but believe the negative side has had it's run. I have never seen a stock endure more negative biased press than PRST has. How any small company could survive such a terrific onslaught of one after another attack is further confirmation of super strong support and those eagerly waiting to pounce on this stock on the drops. Look at an intraday graph for the 26th. Easy to see the huge buying support when the stock gapped down 10 this morning at 58, then soared back to 64 in 15 minutes.
Dave has correctly stated that there is a brand new host of investors that hold this stock long. They will not shake out so easily. Jack states that there will be many chances to make money with this stock, short and long. Let's listen and learn from these guys.
I think we all realize PRST stock will recover. Will this stock settle down and develop a normal trading pattern? My opinion....Not for a while!
I spoke with Lutts Tues. afternoon regarding some research I had found and have not had time to post yet. Those of you that can post sites that are using the PRST technology, I would appreciate this information. Have quite a number of them already and have spoken with 9 printers over the past couple of days....all are delighted. Plan on doing a kind of tour for a few days next week to visit some of these sites.
Good Luck to All,
Neil
Hopeful prediction for close Thursday...PRST - 64 +4. |
